Sytner Group’s operating profit fell 17.6% to £94 million in 2025 as lower vehicle sales outweighed improvements in gross margins.
The top three AM100 dealer group’s operating margin declined from 1.6% to 1.5%, while pre-tax profit fell by 10% to £51.6m.
Accounts filed at Companies House show turnover decreased 13.2% to £6.33 billion in the year to December 31, 2025, compared with £7.30bn in 2024.
The top dealer groups by turnover in the UK will be revealed next month at the AM100 dinner, which will be followed by the 2026 report being published and discussed at the AM100 webinar on November 17..
Used car retail sales fell 23.7% to 90,754 vehicles, while new car volumes declined 10.6% to 76,016. The new car figures include vehicles sold under agency agreements.
The latest results follow on from Sytner Group’s parent Penske Automotive Group agreeing to go private under the full ownership of existing shareholders Penske Corporation and Mitsui.
Lower volumes outweigh margin improvements
Sytner identified the reduction in used car sales as the largest contributor to the fall in turnover.
Gross profit declined 8.3% to £984.3m, although gross margin improved from 14.7% to 15.6%.
The strategic report stated: “Although gross margins improved, the benefit was more than offset by lower sales volumes and the fixed-cost nature of the Group’s operating cost base.”
The group attributed its improved gross margin to disciplined pricing and a more favourable sales mix.
However, lower volumes outweighed improvements in pricing and product mix, reducing the return generated from its operating cost base.
Mini agency transition and JLR disruption
Mini’s move to agency sales in March 2025 also reduced reported turnover.
Under the model, Sytner receives a fee for facilitating new car sales rather than recording the full vehicle selling price as revenue.
The accounts also identify a negative impact from the JLR cyber incident, which halted production and prevented dealerships from accessing manufacturer systems for extended periods.
Sytner reported delays in fulfilling customer orders and reduced new car turnover and profitability at the affected businesses.
It also highlighted the cost of additional EV incentives needed to secure private customer sales, alongside increases in the National Minimum Wage and employers’ National Insurance contributions.
Chinese franchises added
During 2025, Sytner opened eight franchised dealerships representing Chery and Geely at existing locations and sold a used car dealership in Manchester.
The accounts also include £2m of costs relating to the decision to close an Ascot service operation in early 2026, including an £800,000 impairment of tangible fixed assets.
Sytner stated that the closure was not expected to have a material impact on future operations.
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